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The best way to fight terrorism is to prevent the conditions that make it possible for terrorist groups to recruit. A marine corps general recently told a reporter that the way to keep Iraq from becoming a terrorist nation is to make it a "nation of haves" who see an economic future and have a voice in their own internal politics.
We can do this by encouraging democracy peacefully, by withholding military and other aid from dictators and by refusing to overthrow democratically elected governments (or any other kind) on the behalf of fruit companies, sweatshop owners, or oil companies. A government being insufficiently compliant with our corporate interests should not be reason to overthrow them.
Further, we should make it an act of treason for corporations to commit or solicit acts of violence or intimidation against political activists, union organizers, or foreign governments.
If we do this, it is doubtful that too many people would be motivated to fly planes into our buildings again.
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